Pan Am U.S.A.?

Yes, if the CAB agrees

A new name may soon be greeting airline travelers along the East Coast and the Gulf states. Moving toward a long cherished aim of getting some domestic U.S. routes to tie in with its foreign network, Pan American World Airways last week signed a definitive agreement to acquire National Airlines for about $350 million. National's name and sunburst logo would disappear, and on domestic runs the combined line would be known as Pan American U.S.A. On foreign routes Pan Am would leave its name unchanged.

Whether the biggest airline consolidation since the early 1960s will actually take place may not be known for months. The deal still has to be approved by Pan Am and National shareholders, the Civil Aeronautics Board and President Carter. CAB Chairman Alfred Kahn fears that his policy of less regulation and more competition among airlines may be spurring a lot of panic mergers that would lead to less rather than more competition. The CAB is known to have preferred that Pan Am build up its own domestic base instead of taking over another airline's system, but the board's position is puzzling because for more than a decade the CAB and the White House have thwarted efforts by Pan Am to pick up domestic routes. Nonetheless, Pan Am professes confidence in its latest effort. Says one senior executive: "We have a good chance of selling this merger on its merits."

If approved, the deal would end the grandiose hopes of feisty little Texas International Airlines of taking over National. But the Texans, who have lately spent $48 million to buy 20% of National's stock, probably will not be sore losers. At the $41 price that Pan Am is offering for National stock, Texas International's investments will be worth $70 million. .

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